Prime Minister Vladimir Putin submitted the Government report to the State Duma and the Federation Council of the Federal Assembly of the Russian Federation
In compliance with the Federal Law On the Accounting of the Government of the Russian Federation and Information of the Central Bank of the Russian Federation on the Support of the Financial Market, the Banking System, the Labour Market, the National Economy, Social Welfare and Other Socio-Political Measures, Prime Minister Vladimir Putin submitted to the State Duma and the Federation Council of the Federal Assembly of the Russian Federation the Government report on implementing measures to support the financial market, the banking system, the labour market, the national economy and social welfare, and on other socio-political measures in the first half-year of 2009 and the fourth quarter of 2008.
Basic provisions of the
Russian Government's report
on the implementation of measures to support the financial market, the banking
system, the labour market,
sectors of the economy, social
security and other social policies in the first half of 2009 and the fourth
quarter of 2008
With a view to implementing the Action Plan for the Rehabilitation of the Financial Sector and other Sectors of the Economy, approved by the Prime Minister on November 6, 2008, No. 4863p-ShZ, as well as the Anti-Crisis Programme of the Government of the Russian Federation for 2009 in accordance with Federal Law of July 24, 2007 No. 198-FZ On the Federal Budget for 2008 and the Planning Period of 2009 and 2010 and Federal Law of November 24, 2008 No. 204-FZ On the Federal Budget for 2009 and the Planning Period of 2010 and 2011, federal allocations have been assigned to finance measures to support the financial market, the banking system, the labour market, sectors of the economy, social security and other social policies, including the following projects between October 1, 2008 and June 30, 2009:
Moreover, in accordance with Article 4 of Federal Law of October 12, 2008 No. 173-FZ On Additional Support for the Financial System of the Russian Federation, monies from the National Wealth Fund totalling no more than 450 billion roubles can be deposited with Vnesheconombank (VEB) until December 31, 2019 inclusive, at 7% in line with the established procedure of the Government.
The total amount of
monies from the National Wealth Fund placed with VEB deposits was 432.1 billion roubles as of July 1,
2009. Out of that sum, lending institutions took out 257.1 billion roubles' worth of subordinated loans. Another 155.8 billion roubles was placed on the
securities market as of January 1, 2009 and 173.5 billion roubles as of July 1.
1. Support for the banking system
In accordance with Part 3 of Article 18 of Federal Law of May 17, 2007 No. 82-FZ On the Bank for Development and Part 4 of Article 13 of Federal Law of July 24, 2007 No. 198-FZ On the Federal Budget for 2008 and the Planning Period of 2009 and 2010, the Ministry of Finance of the Russian Federation (hereinafter, the Finance Ministry) made a property contribution amounting to 75 billion roubles to the charter capital of the state corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank), to finance the policies supporting Russia's financial market in the fourth quarter of 2008.
Moreover, in line with Part 5 of Article 13 of Federal Law of July 24, 2007 No. 198-FZ On the Federal Budget for 2008 and the Planning Period of 2009 and 2010, with the view to establishing a source of financing the expenses of the state corporation Deposit Insurance Agency envisaged under federal laws, the Finance Ministry made a property contribution amounting to 200 billion roubles to the state corporation Deposit Insurance Agency in the fourth quarter of 2008.
In accordance with Part 7 of Article 25 of Federal Law of November 24, 2008 No. 204-FZ On the Federal Budget for 2009 and the Planning Period of 2010 and 2011, the Russian Government bears the right to make decisions in 2009 on channelling federal budget funds of up to 280 billion roubles to finance policies to support the Russian banking system.
With a view to implementing the above clause of Federal Law of November 24, 2008 No. 204-FZ, the Finance Ministry has made a federal budget contribution amounting to 100 billion roubles to the charter capital of the state corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank), to finance policies to support Russia's banking system in the second quarter of 2009.
Moreover, the Russian Government's Executive Order of July 7, 2009 No. 903 approved a budget allocation of 180 billion roubles to the Federal Agency for State Property Management to augment the charter capital of Bank VTB (an open joint-stock company) to finance policies to support the banking system.
To maintain the required level of liquidity in the banking system in accordance with the Russian Government's Resolution of March 29, 2008 No. 227 On the Procedure for Depositing Federal Budget Funds with Bank Accounts, the Federal Treasury deposited 936.2 billion roubles' worth of federal budget funds with banks between October 1, 2008 and July 1, 2009.
The amount withdrawn from banks accounts and
returned to the federal budget in the reporting period was 636.2 billion
roubles. Interest accrued and remitted to the federal budget
during the reporting period amounted to 4.2 billion roubles.
2. Coordinating and balancing the budgets of constituent entities of the Russian Federation
The Anti-Crisis Programme of the Government of the Russian Federation for 2009 includes anti-crisis measures aimed at ensuring balance of consolidated budgets of the constituent entities of the Russian Federation by providing financial support to the constituent entities, such as 150 billion roubles' worth of subsidies for support of measures to ensure balance of regional budgets. These measures are stipulated in Federal Law of April 28, 2009 No. 76-FZ On Amendments to the Federal Law On the Federal Budget for 2009 and the Planning Period of 2010 and 2011.
The Russian Government and the Government Presidium approved, at a meeting on July 23, 2009, the procedure for and criteria of distributing the subsidies provided to the constituent entities to support measures to ensure balance of consolidated budgets of the constituent entities of the Russian Federation. They further approved draft Government executive orders granting subsidies to specific regions.
Overall, a total of
72.7 billion roubles was distributed
amongst Russian constituent entities in line with the above procedure.
3. Providing specific groups of the population with housing
In accordance with Federal Law of April 28, 2009 No. 72-FZ On Amendments to Certain Legal Acts Aimed at Improving the Financial Situation of Specific Groups of the Population, and Federal Law of November 24, 2008 No. 204-FZ, the Government approved budget allocations to issue 35 billion roubles' worth of subventions for providing, before May 1, 2010, improved housing to WWII veterans, family members of deceased (killed) WWII participants and disabled servicemen entitled for government social support.
Such subventions were not issued to the constituent entities in the first half of 2009.
The Russian Government's Executive Order of June 15, 2009 No. 801-r approves a budget allocation of 20 billion roubles to the Federal Agency for State Property Management for a contribution to the charter capital of the joint stock company Agency for Housing Mortgage Lending with the view to implementing the federal targeted programme Housing from 2002 to 2010. As of now, the Agency for Housing Mortgage Lending is undergoing corporate procedures aimed at augmenting its charter capital. The Russian Government will make its contribution to its charter capital in August-September 2009.
4. Projects stipulated in Part 6 of Article 25 of Federal Law of November 24, 2008 No. 204-FZ On the Federal Budget for 2009 and the Planning Period of 2010 and 2011.
In accordance with Part 6 of Article 25 of Federal Law of November 24 2008 No.204-FZ On the Federal Budget for 2009 and the Planning Period of 2010 and 2011 the Government of the Russian Federation has the right to make decisions in 2009 on directing federal budget allocations of up to 450 billion roubles to fund support measures for the financial market, the labour market, the economic sectors of the Russian Federation, public social security, and other social policies to:
In addition, to stimulate internal demand and therefore to support specific sectors of the economy in the Russian Federation, budget allocations to various federal executive agencies for the purchase of essential equipment, including from the automotive industry, have been approved in the amount of 12.5 billion roubles.
The reserve of budget allocations from the federal budget, linked to the implementation of Part 6 of Article 25 of Federal Law of November 24 2008 No.204-FZ On the Federal Budget for 2009 and the Planning Period of 2010 and 2011 as of July 1, 2009 amounts to 115.1 billion roubles.
In the first quarter of 2009 the federal executive agencies allocated federal funds for:
5. Other projects aimed at supporting the financial system, sectors of the economy and the labour market
In accordance with Federal Law of June 29, 2009 No 131-FZ On introducing amendments to the Federal Law On the Federal Budget for 2009 and the Planning Period of 2010 and 2011 provisions are made for additional budget allocations of 50 billion roubles in subsidies in the form of increased capital to Russian Railways. Consequently, the support specified for Russian Railways will be provided in the third quarter of 2009.
In order to balance the federal budget for 2009 in line with the Russian Government's Executive Order of March 10, 2009 No271-r in the first quarter of 2009, 1,604 billion roubles were made available from the Reserve Fund, including 168.4 billion roubles to guarantee oil and gas transfers.
In the period under review, decisions on offering state guarantees by the Russian Federation in the currency of the Russian Federation for loans taken by strategic organisations in the defence complex to fund production activity and capital investment, and for loans taken by organisations selected in accordance with the system set out by the Government of the Russian Federation, towards production activity and capital investment, were not taken.
